Porter’s Five Competitive Forces:
Threat of New Entrants - Low
For a new company to successfully enter the Integrated Oil & Gas Industry there is a requirement for significant capital investment in specialized machinery and equipment, skilled labor, and technology. After undergoing these initial sunk costs, a company will incur substantial costs associated with finding reserves, drilling, and developing these reserves. The industry is dominated by large firms that have established distribution channels, governmental relationships, high levels of industry expertise, and understand geopolitical factors and environmental regulations. There are also significant costs associated with exit barriers due to heavy environmental regulations and the costs to decommission machinery. A new company will be …show more content…
As a largest oil & gas company in the world with approximate 2015 revenues of $259 billion, ExxonMobil operates in three market segments: upstream, downstream and chemicals. ExxonMobil's mission is to be the premier petroleum and petrochemical company in the world 7. To deliver on that mission requires each of the three market segments, upstream, downstream and chemical, to be premier among their competition.
Overall Corporate Strategy
With relentless attention to the operational excellence, safe, reliable, efficient operations and reducing the risk by applying the highest operational standards are embedded in ExxonMobil's culture. Systems are deployed consistently with high standards to be the best in class for the operational performance. Continued long-term focus on maximizing profitability and returns from every asset is key for all the business segments. This long-term approach has positioned each of Exxon’s business to be at the top of their respective areas of competition, which allows Exxon to maximize long-term shareholder